Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Q3 2023 Earnings Presentation
36 slides from Aluminium Bahrain B.s.c's earnings presentation, November 2023
Slide 1: Investor Relations Presentation Q3 2023
INVESTOR RELATIONS PRESENTATION Q3 2023
Slide 2: Disclaimer
DISCLAIMER This document has been prepared and issued by and is the sole responsibility of Aluminium Bahrain B.S.C. (the “Company”). The document is being supplied to you solely for your information and for use at the Company’s presentation. No information made available to you in connection with th
Slide 3: Contents
CONTENTS 01 02 03 Industry Alba 9 Months 2023 Highlights Highlights Results 04 05 06 Industry Perspectives 2023 Alba Appendix in 2023 Priorities Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel Page 4
Slide 5: World Market Demand +3% YoY
World Market Demand +3% YoY Economic growth in major markets remained under pressure in Q3 2023 as tighter monetary policy weigh on household spending and commodities’ consumption Middle East: Demand up by 7% YoY supported by higher consumption in UAE & KSA Chinese consumption up by 5% YoY driven by
Slide 6: World Market Supply +3% YoY
World Market Supply +3% YoY Despite a dull demand, global primary production was pushed up by higher output in China and Americas North America production up by 7% YoY due to restarts at Canadian smelters (Kitimat and Alumar) Chinese supply up by 4% YoY (output reached an-all-time high in August) at
Slide 7: LME Price & Premiums Struggle to Find Positive Momentum
LME Price & Premiums Struggle to Find Positive Momentum LME Price remained under pressure as bearish market sentiment dominated the trading activity. LME-Cash averaged US$2,155/t in Q3 2023 -- down by 8% YoY [lowest: US$2,068.50/t on 21 Aug’23 and highest: US$2,307.50/t on 29 Sep’23] LME inventories
Slide 8: Alumina Price: 17% of LME Price
Alumina Price: 17% of LME Price [US$362/t] LME Price Trend (US$/t) 2,500 2,354 2,399 2,324 2,263 2,155 2,100 1,700 1,300 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Alumina Price Index Trend (% of LME) 19% 18% 17% 17% 16% 16% 15% 13% 10% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news in Q3 2023 Page 9
Slide 10: Safety in Numbers
Safety in Numbers # Total Injuries 60 # Recordable Injuries 49 50 # LTIs 40 34 32 30 20 11 10 10 6 0 2020 2021 2022 Q1 23 Q2 23 Q3 23 12 11 9 3 2 1 Achieved on 29 October 2023 1 0 1 0 1 0 Page 10
Slide 11: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights First smelter in the region to be successfully recertified to the newest version (V3) of Aluminium Stewardship Initiative (ASI)’s Performance Standard Winner of Al Bilad Award for CSR 2023 - Environment Category Inauguration of Mangrove Nurse
Slide 12: ESG: A Journey, Not A Destination
ESG: A Journey, Not A Destination › Energy Management System (EMS) & Power Station Efficiency › Afforestation & Reforestation Decarbonisation › Inert Anode Technology › Hydrogen › Carbon Capture & Storage (CC&S) & Carbon Offsets › On-site Solar Green Energy & Aluminium › Government Collaboration Cir
Slide 13: ESG Journey by 2035
ESG Journey by 2035 Q2 2024 Q4 2024 Q2 2027* 2025-2027 2030 Alba Solar Efficiency Upgrades Recycled Government Farm Material Collaboration 2035 6.23 MW Solar Commissioning Power Remelting 500-1,000 MW Farm Capacity Station 5 Block 4 & 15kMT - of Imported Grid Initiative [Tender Awarded] Retiring Old
Slide 14: Operational Highlights – Q3 & 9 Months of 2023
Operational Highlights – Q3 & 9 Months of 2023 Production [Q3: 409,445 metric tonnes (MT), up by 1% YoY; 9 Months: 1,213,325 MT, up by 2% YoY] Sales’ volume [Q3: 430,351 MT, up by 17% YoY; 9 Months: 1,182,286 MT, up by 7% YoY] Value Added Sales [Q3: 68% versus 67% in Q3 2022; 9 Months: 67% same for
Slide 15: Financial Key Performance Indicators – Q3 & YTD 2023
Financial Key Performance Indicators – Q3 & YTD 2023 EBITDA Free Cash Flow1 YTD: US$252 million down by 75% YoY YTD: US$601 million YTD: US$396 million down by 53% YoY Q3: US$46 million down down by 45% YoY by 64% YoY Q3: US$168 million Q3: US$184 million down by 28% YoY down 25% YoY Profit 1Free Ca
Slide 16: 9 Months 2023 Results
03 9 Months 2023 RESULTS Reference: Interim Condensed Consolidated Financial Statements for the Nine Months Period Ended 30 September 2023 (reviewed) Page 16
Slide 17: Lower Metal Sales Owing to Lower LME Price & Premiums
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Lower Metal Sales Owing to Lower LME Price & Premiums Metal Sales’ Bridge (US$M) – YTD 2023 vs. YTD 2022 4,000 636 3,000 166 242 40 by 20% YoY in LME Price 2,000 3,666 3,066 by 36% YoY in Premiums 1,000 0 Metal Sales LME Pricing Po
Slide 18: Sales by Product-Line Bridge YTD 2023
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Higher VAP │ Higher Liquid Metal │ Lower Commodities’ Volume YTD 2023 vs. YTD 2022 Premium Above LME Trend US$ Per MT Sales by Product-Line Bridge (MT’000) 1,200 48 32 7 500 800 36% 1,182 350 1,109 480 400 200 306 0 50 Sales Value
Slide 19: Higher Direct Cost Offset by Drop in Alumina Prices
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Higher Direct Cost Owing to Higher Production & Partially Offset by Drop in Alumina Prices YTD 2023 vs. YTD 2022 - Direct Cost Bridge (US$M) 2,500 67 89 10 107 27 11 161 2,000 1,500 2,362 2,212 1,000 500 Direct Cost RM RM Energy Ot
Slide 20: Lower EBITDA Owing to Lower Metal Sales & Higher Costs
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Lower EBITDA Owing to Lower Metal Sales & Higher Costs YTD 2023 vs. YTD 2022 - EBITDA Bridge (US$M) EBITDA 34.9% 1,300 1,100 600 900 10 EBITDA 19.5% 700 1,280 150 61 500 601 300 100 EBITDA Metal Other Direct Selling EBITDA YTD 2022
Slide 21: Cash Flow Bridge FY 2022 to YTD 2023
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Cash Flow Bridge FY 2022 to YTD 2023 FY 2022 to YTD 2023 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 900 100 750 800 114 600 72 84 600 610 373 450 400 726 300 200 396 150 249 284 0 0 Cash CF WC CAPEX Block 4 Net Debt Payment Cash
Slide 22: Key Financial Performance for Q3 & 9 Months 2023
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Key Financial Performance for Q3 & 9 Months 2023 Financial Summary Q3 2023 Q3 2022 YTD 2023 YTD 2022 Average Cash LME (US$/MT) 2,155 2,354 2,272 2,834 Average Alumina Price (US$/MT) 362 413 363 436 Revenue (US$M) 1,064 1,072 3,077
Slide 23: Industry Perspectives in 2023
04 INDUSTRY PERSPECTIVES1 IN 2023 1 Industry Perspectives are based on CRU Market Intel Page 23
Slide 24: Aluminium Industry: Volatility & Uncertainty to Shape Medium Term Outlook
Aluminium Industry: Volatility & Uncertainty to Shape Medium Term Outlook Aftershocks from pandemic and Russia-Ukraine war will continue to weigh on aluminium fundamentals in the short-run Prospects for healthier 2024 will depend on better economic performance in major markets and a return to restoc
Slide 25: Major Raw Materials Price Trends
Major Raw Materials Price Trends (Al₂O₃, AlF3, Liquid Pitch and GPC) Despite a weak market sentiment, alumina prices are expected to hold firm over the short-run and will be under pressure over the long-term Liquid Pitch prices to range higher as compared to the usual average mainly due to the coal
Slide 26: 2023 Alba Priorities
05 2023 ALBA PRIORITIES1 1 Based on Alba 5-Year Strategic Initiatives Page 26
Slide 27: Enhance Business Value Through Sustainability & Safety Excellence
Enhance Business Value Through Sustainability & Journey Towards Safety Excellence Safety is a Journey ‘Safety is our Operating License’ Embrace sustainability across our value chain in line with Bahrain’s objectives for ‘Net Zero Emissions’ by 2060 Boost 2023 Net Finished Production by Forced Coolin
Slide 28: Appendix (Q3 2023 Results)
06 APPENDIX (Q3 2023 Results) Reference: Condensed Consolidated Interim Financial Information for the Nine Months Period Ended 30 September 2023 (reviewed) Page 28
Slide 29: Lower Metal Sales due to Lower LME Price & Premiums
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Lower Metal Sales due to Lower LME Price & Premiums Metal Sales’ Bridge (US$M) – Q3 2023 vs. Q3 2022 1,200 128 950 188 80 1 by 8 % YoY 700 in LME Price 1,072 1,053 by 39% YoY 450 in Premiums 200 Metal Sales LME Pricing Power Produc
Slide 30: Sales by Product-Line Bridge Q3 2023
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Higher VAP │ Higher Liquid Metal │ Higher Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q3 2022 vs. Q3 2023 500 500 6 12 400 46 400 39% 300 300 467 430 366 200 200 284 100 100 Sales Va
Slide 31: Higher Direct Cost Partially Offset by Drop in Alumina Prices
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Higher Direct Cost Owing to Higher Production Partially Offset by Drop in Alumina Prices Q3 2023 vs. Q3 2022 - Direct Cost Bridge (US$M) 850 23 118 69 9 0 10 700 7 550 868 784 400 250 100 Direct Cost RM RM Energy Other Alumina Inve
Slide 32: Lower EBITDA Owing to Lower Metal Sales & Higher Costs
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Lower EBITDA Owing to Lower Metal Sales & Higher Costs EBITDA Bridge (US$M) – Q3 2023 vs. Q3 2022 EBITDA 21.8% 250 10 19 200 EBITDA 15.8% 83 150 26 234 100 168 50 0 EBITDA Metal Other Direct Selling EBITDA Q3 2022 Sales Sales Cost
Slide 33: Cash-Flow Bridge Q2 2023 to Q3 2023
Volatility & Uncertainty Continue to Weigh on Aluminium Fundamentals Cash-Flow Bridge Q2 2023 to Q3 2023 Q2 2023 to Q3 2023 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 600 58 38 500 55 250 164 400 127 200 300 50 150 245 200 100 184 332 284 100 50 0 0 Cash CF WC CAPEX Block4 Net Debt Payment Cash Q
Slide 34: Alba Shareholder's Structure
Alba Shareholder’s Structure Alba was converted into a Bahrain Public Joint Stock Company on 23 November 2010 Alba shares are listed on two exchanges: Ordinary Shares on Bahrain Bourse and Global Depository Receipts (GDRs) on the London Stock Exchange – Alternative Investment Market Alba Ticker [BHB
Slide 35: Alba Share Price Performance
Alba Share Price Performance [ALBH, BD] 1.400 1.200 1.095 1.000 1.090 0.800 0.46% 0.600 0.400 0.200 0.000 Page 35
Slide 36: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 36
Aluminium Bahrain B.S.C. (Alba) — Q3 2023 Earnings Presentation on 6ix